FX.co ★ Merval Plunges After Provincial Elections

Argentina's Merval index has seen a significant drop, falling below the 1,800,000 mark, its lowest point since October of the previous year, after reaching an all-time high earlier this year. This decline comes amidst a worsening political crisis that has unsettled investor trust. President Javier Milei's governing coalition faced a significant setback in the Buenos Aires provincial elections, potentially hindering his reform-focused initiatives. Furthermore, accusations of corruption involving the President's sister have further undermined confidence, leading to a surge in bond yields, heightened pressure on the peso, and necessitating market intervention to support the currency as the nation approaches increasingly unpredictable midterm elections in October.